From Harrisburg budget negotiations to federal infrastructure policy, the past two months have brought several developments with the potential to impact sheet metal contractors. Lawmakers are advancing prevailing wage reform, electrical licensing, and workforce initiatives while a strong Pennsylvania revenue picture reshapes budget negotiations. At the federal level, the September 30 IIJA expiration looms, tariffs continue to reshape material pricing, and private-sector workforce investments are landing at scale.

Here's a look at the legislative, regulatory, and industry developments shaping the business environment for sheet metal contractors across Pennsylvania, New Jersey, and Delaware.

🏛️ Legislative Watch

Prevailing Wage Expansion Clears the PA Senate

Senate Bill 908, sponsored by Sens. Christine Tartaglione (D-2, Philadelphia) and Frank Farry (R-6, Bucks), passed the Pennsylvania Senate on June 10, 2026, by a bipartisan 37–13 vote. The bill now moves to the House for consideration.

SB 908 would do two things directly relevant to sheet metal contractors:

• Extend prevailing wage protections to off-site custom fabrication performed for public projects — including HVAC, sheet metal, welding, and mechanical work fabricated in shops before installation.
• Prohibit split-rate pay — the practice of paying a worker two different prevailing wage rates for the same job on the same day.

Why it matters: For SMCA contractors already paying prevailing wages on public work, SB 908 levels the playing field with competitors performing lower-cost off-site fabrication. As prefabrication becomes a bigger share of modern construction, the outcome in the House will have direct implications for how public projects are estimated, bid, and executed. Members with public-project experience are encouraged to share their perspective with SMCA before House testimony — contact Pete Jenkins at pjenkins@smca.org.

Statewide Electrical Licensing Passes the PA Senate

Senate Bill 1260, sponsored by Sens. Devlin Robinson (R-37), Joe Picozzi (R-5), and Tracy Pennycuick (R-24), passed the Pennsylvania Senate on June 10, 2026. It now heads to the House.

The bill would create the State Board of Electrical Licensure and establish uniform statewide licensing requirements for electrical contractors and electricians, replacing Pennsylvania's current municipality-by-municipality patchwork. It would also authorize reciprocity agreements with states operating similar systems.

Why it matters: While SB 1260 applies to electricians, it signals a broader shift in Pennsylvania toward statewide occupational licensing standards — a policy conversation that could influence future licensure discussions across other construction trades.

Pennsylvania's Strong Revenue Picture Reshapes Budget Talks

Pennsylvania closed FY 2025–26 with General Fund collections of $48.9 billion — $1.14 billion (2.4%) above the official estimate, according to the Department of Revenue. Strong sales tax and employer withholding tax collections drove the surplus.

The Independent Fiscal Office has since revised FY 2026–27 revenue projections upward by $923 million, giving lawmakers additional flexibility as budget negotiations continue.

Bottom line: State budget surpluses typically translate into future investment in infrastructure, workforce development, and public construction. How lawmakers deploy the additional room over the coming weeks will shape SMCA contractors' opportunity pipeline for years.

Separations Act Protections Held in FY 2026-27 Budget

Attempts to exempt Philadelphia from Pennsylvania's Separations Act — the state law requiring separate prime contracts for mechanical, electrical, and plumbing scopes on public construction — were successfully thwarted during the FY 2026-27 state budget process. No negative language was added to the Fiscal Code or School Code bills.

The victory was led by John Wanner, Executive Vice President of SMACNA of Pennsylvania, working with SMACNA Pennsylvania's advocacy team throughout the budget cycle.

Why it matters: The Separations Act is one of Pennsylvania's most important protections for union mechanical contractors bidding public work. Exempting Philadelphia would have opened the door to bundled prime contracts that historically disadvantage specialty trade contractors and often shift work away from union firms. Members who want to support this ongoing advocacy work are encouraged to contribute to SMACNA of Pennsylvania and the SMACNA PA PAC.

Looking ahead: The threat is expected to resurface in the Fall. SMCA will continue coordinating closely with SMACNA of PA on the next round of advocacy.

New Jersey Tightens Public-Works Workforce Requirements

New Jersey enacted amendments to the Public Works Contractor Registration Act on January 12, 2026, effective mid-March. The new law establishes minimum qualifications for craft workers on public projects: workers must either have graduated from an apprenticeship program meeting building-trade standards or have at least four years of documented craft experience.

Why it matters: For SMCA contractors bidding public work in New Jersey, workforce documentation and apprenticeship compliance are now enforceable qualifications, not just preferences. Prime and Menold, among others, work across state lines and should review New Jersey compliance early in the bid cycle.

Workforce Development Remains a Priority

Addressing Pennsylvania's skilled labor shortage continues to receive bipartisan attention.

Lawmakers continue considering proposals that support career and technical education, construction pre-apprenticeship programs, and workforce development initiatives designed to strengthen the pipeline of skilled trades professionals entering the industry. Acting Secretary of Labor Keith Sonderling's recent visit to SMCA and member contractor Prime Sheet Metal, Inc. is an important signal of the administration's focus in this area. In the roundtable at SMCA, the Secretary emphasized the DOL's goal of 1 million registered apprenticeships and the importance of localizing workforce investment.

For contractors: The long-term success of our industry depends on attracting, training, and retaining the next generation of skilled workers.

⚖️ Regulatory Watch

Construction Opioid Awareness Week

Pennsylvania will once again recognize Construction Opioid Awareness Week from July 20-24, reinforcing the industry's commitment to education, prevention, and recovery.

The annual Senate resolution acknowledges construction's elevated risk of opioid misuse and recognizes industry organizations, including SMACNA Pennsylvania, for their ongoing leadership in raising awareness and supporting workers and their families.

Why it matters: Construction safety extends beyond the jobsite. Supporting worker health and well-being helps build a stronger, safer, and more resilient workforce.

🏗️ Industry Watch

IIJA Reauthorization on the Clock — 75 Days and Counting

The Infrastructure Investment and Jobs Act (IIJA) expires September 30, 2026. As of mid-July, no reauthorization legislation has yet been introduced in either chamber.

The Congressional Research Service projects that a five-year reauthorization beginning FY 2027 would face a $166 billion revenue-vs-outlays gap — meaning any successor bill will require either new revenue sources, spending reductions, or both.

Why it matters: The outcome will shape federal transportation and public-construction funding for the next five to six years — including Philadelphia-region investments many SMCA contractors depend on for backlog. Extensions typically continue existing funding levels but delay new investment decisions.

Philadelphia's $34.7M Clean Energy Project Brings HVAC Upgrades to 14 City Buildings

On July 14, the City of Philadelphia announced the Quadplex Plus Community Health GESA Project — a $34.7 million clean-energy investment bringing HVAC, lighting, and mechanical upgrades to 14 municipal buildings, including the Quadplex (City Hall, One Parkway, Municipal Services Building, Juanita Kidd Stout Center for Criminal Justice), six health centers, and homeless services facilities.

The project is financed through Pennsylvania's Guaranteed Energy Savings Act (GESA), which allows the City to fund improvements through future energy savings. Construction began in June 2026 and is expected to be completed by Fall 2027. The City projects the work will create approximately 300 jobs, with more than 52% performed by local contractors.

Opportunity for contractors: HVAC and mechanical scope across 14 municipal buildings represents significant near-term opportunity for SMCA contractors. Because the project is publicly funded and Pennsylvania's Separations Act remains intact, prevailing wage requirements and separate-prime contracting apply — meaning union mechanical contractors are well-positioned to compete. Members interested in this and future GESA projects should monitor Philadelphia's Office of Sustainability and Department of Public Property procurement notices.

Steel & Aluminum Tariffs Continue Reshaping Material Costs

Federal 50% tariffs on steel, aluminum, and copper — with 25% tariffs on derivative products — remain in effect through 2026. Nonresidential construction input prices rose at a 7.1% annualized rate in January, with steel mill products up over 20% and aluminum shapes up 33% year-over-year. Contractors continue reporting project cancellations, delayed procurements, and material overruns of 10-15%.

What we're watching: Sheet metal is at the center of this issue. Estimating discipline, procurement timing, and material-escalation clauses have never been more consequential for SMCA contractor margins.

Google.org Commits $50 Million to Skilled Trades — Sheet Metal Industry Included

On June 11, 2026, Google.org announced a $50 million commitment to support skilled trades workforce training across 14 labor unions and four trade and contractor associations. The sheet metal industry's International Training Institute (ITI) — the joint SMART/SMACNA training entity — is one of four named beneficiaries.

Funding will support modernized coursework, expanded apprentice support, and new AI-assisted training tools at ITI, directly benefiting the pipeline serving SMCA contractors.

Why it matters: This is significant private-sector validation of the union sheet metal training model. When combined with local investments through the JATC and TAB Lab renovation, the region's contractors are well-positioned to compete for skilled workforce at scale.

ROAD to Housing Act Opens Retrofit Opportunities for Sheet Metal Contractors

Congress enacted the ROAD to Housing Act in early July, creating new grant and forgivable-loan programs for whole-home repairs — including HVAC replacements, heat pump installations, ductwork improvements, and ventilation upgrades — through Section 202's pilot program for eligible homeowners and landlords.

In a recent ACHR News interview, SMACNA Executive Director of Government Affairs Stan Kolbe described the law as a source of new opportunities for contractors, noting his support for its long list of tax credits and grants "to help homeowners, especially first-time buyers, to retrofit and upgrade HVAC and related systems to drive down costs of owning and operating a home."

Opportunity: For SMCA contractors active in residential and light-commercial retrofit work, the new law expands the funded universe of eligible projects — with ductwork and ventilation upgrades named explicitly. Members interested in the pilot program should monitor guidance as it's released.

👀 On Our Radar

• House consideration of SB 908 (prevailing wage) and SB 1260 (electrical licensing)
• Pennsylvania FY 2026–27 budget — final agreement pending
• IIJA reauthorization — September 30, 2026 expiration
• Federal DOL apprenticeship expansion — Sonderling's 1-million-registered-apprenticeship goal
• Steel, aluminum, and copper tariff policy — ongoing legal and legislative challenges
• ROAD to Housing Act Section 202 pilot program — implementation guidance and grant availability
• Pennsylvania workforce development funding through the state budget
• Separations Act protections — potential exemption legislation for Philadelphia expected to resurface in the Fall

🤝 SMCA in the Room

Government affairs is about showing up where policy is made. Since the spring:

• April, 2026: SMCA hosted Pennsylvania State Rep. Brian Munroe at Prime Sheet Metal, Inc. for a workforce and responsible-contracting discussion.
• May 6–8, 2026: SMCA joined the SMACNA Washington Leadership Conference, meeting with congressional offices on workforce development and industry priorities.
• June 12, 2026: SMCA hosted Acting U.S. Secretary of Labor Keith Sonderling at our Warminster office and Prime Sheet Metal for a workforce development roundtable. Discussion centered on registered apprenticeship, veteran recruitment (Helmets to Hardhats, SMART Heroes), and the DOL's goal of 1 million registered apprenticeships nationwide. Full recap in the Summer Spec Sheet.

Looking Ahead - And How You Can Engage

Government policy, regulatory decisions, and economic investment continue to shape the environment in which SMCA contractors operate.

Two ways to get involved:

• Attend the SMCA Legislative Dinner on Thursday, September 17 at the Union League of Philadelphia. Distinguished guests include Senator John Kane and Senator Frank Farry (a co-sponsor of SB 908), and Congresswoman Mary Gay Scanlon. This is a direct opportunity to hear from — and speak with — the lawmakers shaping Pennsylvania construction policy. RSVP at smca.org/events.
• Share your perspective. If you have real-world experiences or concerns in any of these areas, we'd love to hear from you. Your on-the-ground experience shapes SMCA's positions with lawmakers.

SMCA will continue monitoring legislative, regulatory, and industry developments and advocating for policies that strengthen our contractors, workforce, and the sheet metal industry.

For More Information

• Pennsylvania Senate Bill 908 (Prevailing Wage) — full bill text
• Pennsylvania Senate Bill 1260 (Electrical Licensure) — full bill text
• Pennsylvania Department of Revenue FY 2025–26 Collections — press release
• SMACNA: Stan Kolbe on the ROAD to Housing Act — member update
• Google.org Skilled Trades Investment — announcement